There is typically an obstacle rate (a yearly needed return of 7-10%) that general partners must attain prior to efficiency fees are enabled to be taken. The structure of these efficiency costs encourages the partners of private equity firms to produce big returns; they are meant to align the interests of the general partner with the limited partners - .
PE Firm https://travisslur183.xtgem.com/basic%20private%20equity%20strategies%20for%20investors Focus There are several types and sizes of private equity firms and funds. tyler tysdal lone tree. A private equity firm could have numerous funds that can concentrate on either a specific industry or a particular location. Private equity companies create funds to concentrate on locations where they believe that can develop value for companies. .